PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan, 77, of Villanova, Pennsylvania, had been sentenced right now to 168 months in federal jail and ordered to pay for a $2.5 million fine regarding the a scheme to gather billions of bucks in illegal debt acquired from high-interest loans. The government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting in November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct.
Hallinan, a previous investment banker, was at the payday financing company from at the least 1997 to 2013. Dubbed “the Godfather of payday lending” because of the media during their test, Hallinan owned, operated, and financed organizations that issued small-amount, fixed-fee loans and collected debts on these loans more than $690 million. The loans had been understood in the market as “payday loans” because borrowers frequently took them off to protect expenses after which reimbursed the key, plus costs and interest, along with their next paychecks or other constant earnings, such as for example social safety payments. Hallinan made their unlawful fortune by billing fixed costs and high interest levels far more than the thing that was allowed under states’ usury laws and regulations.
“Charles Hallinan, an advanced, extremely educated businessperson, ended up being nothing but a loan shark whose business that is entire ended up being constructed on trapping their victims in a endless financial obligation period,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those that could minimum manage it—struggling borrowers whom made these loans frequently to fund life’s necessities. He bet their lifestyle from the known undeniable fact that we’d perhaps maybe not get him. He destroyed that bet,” McSwain commented. “Now, it is time for Hallinan to repay their financial obligation aided by the only money we’ll accept: their freedom along with his fortune, amassed at their victims’ expense.”
The us government proved at test that Hallinan knew these loans violated state legislation, so he hid his individual participation behind a series of “straw” loan providers, including a federally-insured bank and three Indian tribes. Hallinan’s co-defendant, Delaware lawyer Wheeler K. Neff, assisted Hallinan in structuring the scam and Hallinan’s that is hiding participation. Neff ended up being sentenced in might 2018 to eight years imprisonment that is their component within the scheme.
“Charles Hallinan devised a way that is ugly produce a pretty penny,” stated Michael T. Harpster, Unique Agent in control of the FBI’s Philadelphia Division. “This multimillionaire lived big regarding the profits of their sleazy payday lending kingdom, constructed on the backs of individuals literally residing paycheck to paycheck. Excessive charges and usurious rates of interest had been the title for the game, and Hallinan always stepped away the champion. Well, https://online-loan.org/payday-loans-oh/ maybe not this time around. Now he is walking away in handcuffs, headed to federal jail.”
Included in the sentence imposed today, the federal government desired and obtained a substantial forfeiture judgment against Hallinan, that will remove him associated with the trappings of success he acquired due to their illegal conduct. The region court ordered the defendant to pay for a forfeiture cash judgment of simply over $64 million as profits associated with RICO conspiracy, and in addition ordered him to forfeit their desire for around $1.2 million in funds in 18 bank reports; two Mercedes Benz cars; one Bentley automobile; and their Villanova mansion.
“IRS Criminal research is invested in making use of our forensic accounting skills to greatly help unravel complex fraud that is financial cash laundering schemes,” stated IRS Criminal research Special Agent in control man Ficco. “We are proud to do business with our police lovers to analyze and prosecute people who attempt to enrich on their own by fraudulent means. Charles Hallinan’s jail phrase is really a reminder that we now have harmful effects because of this variety of unlawful behavior.”
Daniel Brubaker, Inspector responsible for the usa Postal Inspection provider, Philadelphia Division, praised the investigatory work behind the conviction: “This workplace prides itself on investigating this kind of unlawful behavior. We too are proud to possess worked with your police lovers to aggressively investigate people who scheme to prosper at the cost of others.”
The situation ended up being investigated by the Federal Bureau of research, Internal sales provider Criminal Investigations, while the united states of america Postal Inspection Service. It really is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Maria Carrillo.